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Key Points

The Indian stock market displayed significant resilience after an early plunge, influenced by US President Donald Trump's tariff announcement. Despite the initial downturn, both the Sensex and Nifty indices managed strong recoveries by closing time. Global geopolitical tensions, especially between Russia and Ukraine, and foreign investment volatility contributed to the market's cautious atmosphere. Nevertheless, select heavyweight stocks and sectoral strengths, particularly in real estate and FMCG, provided supportive momentum to limit losses.

Key Points: Sensex Rebounds Despite Trump Tariff Shock and Global Tensions

  • Sensex drops 77 points rebounding 719 points intraday
  • Trump steel tariff increase affects investor sentiment
  • Select heavyweight stocks bolster market resilience
2 min read

Markets bounce back after early slump, end slightly lower

Indian markets show resilience amid tariff tension and geopolitical concerns, ending slightly lower but with remarkable intraday recovery.

"The domestic market continued its consolidation phase for the third consecutive week. - Vinod Nair, Geojit Investments Limited"

Mumbai, June 2

Indian stock markets showed resilience on Monday, recovering strongly from early losses to end just mildly lower by the closing bell.

The Sensex ended the day at 81,374, down by 77 points or 0.09 per cent. However, this marked a sharp rebound of 719 points from the day's low of 80,654.

Similarly, the Nifty closed at 24,717, slipping 34 points or 0.14 per cent, after recovering from its intra-day low of 24,526.

Investor sentiment was weak in the morning after US President Donald Trump announced higher tariffs on steel imports.

The proposed hike, from 25 per cent to 50 per cent, is expected to take effect from June 4.

On top of this, rising tensions between Russia and Ukraine, volatile foreign investment flows, and caution ahead of the Reserve Bank of India’s (RBI) policy decision all weighed on the market mood.

Despite the shaky start, buying interest in select heavyweight stocks helped limit the damage.

Shares of Adani Ports, Mahindra and Mahindra, Zomato (traded as Eternal), PowerGrid, Hindustan Unilever, Bajaj Finserv, ITC, ICICI Bank, Asian Paints, and Nestle India saw gains ranging between 0.4 per cent and 2 per cent.

In the broader market, the Nifty MidCap and Nifty SmallCap indices outperformed, ending with gains of 0.62 per cent and 1.1 per cent, respectively.

Among sectors, the Nifty IT and Nifty Metal indices were the worst hit, both falling 0.7 per cent due to concerns over the US tariffs.

On the other hand, the Nifty Realty and Nifty PSU Bank indices emerged as the top performers, each rising over 2 per cent.

"The domestic market continued its consolidation phase for the third consecutive week, influenced by renewed concerns over a potential tariff war and escalating geopolitical tensions between Russia and Ukraine,” Vinod Nair of Geojit Investments Limited said.

“While global uncertainties have led investors to adopt a risk-averse approach, the Indian market has demonstrated resilience, underpinned by robust institutional inflows and selective sectoral strength like FMCG, real estate, and financial stocks,” Nair stated.

He said that under the current market landscape, investors are adopting a cautious short-term strategy, with a focus on domestically-oriented and interest-sensitive sectors.

- IANS

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Reader Comments

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Rahul K.
Our markets are showing real strength despite global headwinds! This recovery from 700+ points down is impressive. Shows foreign investors still have faith in India's growth story 🇮🇳 But we need to be careful about over-dependence on FII money.
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Priya M.
Why is RBI not doing more to stabilize the markets? Every time there's global uncertainty, retail investors suffer while big players make money in volatility. Need better safeguards for common people investing their hard-earned savings.
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Amit S.
Midcap and smallcap outperforming again! This is where real wealth is created for long-term investors. But beware - high risk comes with high reward. Do your research before jumping in. #InvestSmart
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Sunita R.
Trump's tariffs are bad news for our IT and metal companies. When will our government take strong steps to protect Indian interests? We can't keep reacting to every global development - need proactive policies.
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Vikram J.
Good to see domestic-oriented sectors holding up. This shows the strength of our internal economy. Real estate and PSU banks performing well is positive for employment and infrastructure development. Jai Hind!
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Neha P.
Market experts always say "be cautious" but never tell what exactly to do! 😅 As a new investor, these mixed signals are confusing. Should I buy the dip or wait for more stability? Anyone with simple advice?

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